THE BOURSE WHISPERER: Northern Star Resources is understandably pleased with itself having received recent drilling results of up to 2330 grams per tonne at the company’s Paulsens gold mine in Western Australia.
The company said the latest results have set up a substantial increase in resources and mine life for Paulsens as they indicate the existence of an extremely high-grade pocket of mineralisation, which has produced a number of hits of more than 12,000g/t.
The latest drilling results come from both the Voyager 1 lode, which has produced all the gold mined to date at Paulsens under Northern Star ownership, and from the adjacent Voyager 2 lode.
Long section view of significant drill results for Voyager One lode and extension position. Source: Company announcement
The latest drilling results from Voyager 1 include (uncut):
– 2.3 metres at 1115.4 grams per tonne gold (2m true width), including 1.1m at 2330 grams per tonne gold;
– 19m at 75.8g/t (12m true width), including 4.0m at 251.7g/t gold; and
– 4.3m at 86.3g/t gold (2.3m true width);
All the fresh results from Voyager 1, as well as all the results ever generated from Voyager 2, were not included in a 318,000 ounce resource estimate Northern Start recently reported for the Paulsens project.
The company said the new figures, although spectacular in grade, held more importance in regard to their impact on the overall resource estimate and mine life at Paulsens.
“These results show Paulsens is headed for another substantial resource upgrade, which will in turn add years to the project’s life,” Northern Star Resources managing director Bill Beament said in the company’s announcement to the Australian Securities Exchange.
“When you combine this outlook with the strong margins and revenue being generated at Paulsens, the economic consequences of these results become clear.
“In essence, they are extremely valuable to Northern Star shareholders.”
Northern Star said the project is now characterised by growing mine life, a clear plan to increase production from 80,000 to 100,000 ounces per annum, strong cash margins and rising revenue.
The company is also advancing plans to establish a 100,000ozpa stand-alone operation at its neighbouring Ashburton project, where it recently increased resources by 50 per cent to one million ounces.